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Loans and Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2020

Financing Receivable, Allowance for Credit Loss [Line Items]

Schedule of Composition of Loan Portfolio

The following table summarizes the composition of our loan portfolio. Total gross loans are recorded net of deferred loan fees and costs, which totaled $3.6 million as of September 30, 2020 and $3.3 million as of December 31, 2019.


	September 30, 2020						December 31, 2019
(dollars in thousands)	Amount			% of Total			Amount			% of Total
Commercial
Owner occupied RE	$	419,316			20.2	%	$	407,851			21.0	%
Non-owner occupied RE		570,139			27.4	%		501,878			25.8	%
Construction		64,063			3.1	%		80,486			4.1	%
Business		303,760			14.6	%		308,123			15.9	%
Total commercial loans		1,357,278			65.3	%		1,298,338			66.8	%
Consumer
Real estate		496,684			23.9	%		398,245			20.5	%
Home equity		161,795			7.8	%		179,738			9.3	%
Construction		39,355			1.9	%		41,471			2.1	%
Other		23,428			1.1	%		25,733			1.3	%
Total consumer loans		721,262			34.7	%		645,187			33.2	%
Total gross loans, net of deferred fees		2,078,540			100.0	%		1,943,525			100.0	%
Less—allowance for loan losses		(42,219	)					(16,642	)
Total loans, net	$	2,036,321					$	1,926,883

Schedule of Loan Maturity Distribution by Type and Related Interest Rate

The information in the following tables summarizes the loan maturity distribution by type and related interest rate characteristics based on the contractual maturities of individual loans, including loans which may be subject to renewal at their contractual maturity. Renewal of such loans is subject to review and credit approval, as well as modification of terms upon maturity. Actual repayments of loans may differ from the maturities reflected below, because borrowers have the right to prepay obligations with or without prepayment penalties.


	September 30, 2020
			After one
	One year		but within		After five
(dollars in thousands)	or less		five years		years		Total
Commercial
Owner occupied RE	$	20,585		136,345		262,386		419,316
Non-owner occupied RE		47,848		312,776		209,515		570,139
Construction		19,699		23,221		21,143		64,063
Business		72,291		145,878		85,591		303,760
Total commercial loans		160,423		618,220		578,635		1,357,278
Consumer
Real estate		12,314		63,182		421,188		496,684
Home equity		5,339		24,279		132,177		161,795
Construction		5,053		325		33,977		39,355
Other		6,810		12,604		4,014		23,428
Total consumer loans		29,516		100,390		591,356		721,262
Total gross loans, net of deferred fees	$	189,939		718,610		1,169,991		2,078,540
Loans maturing after one year with:
Fixed interest rates							$	1,536,279
Floating interest rates								352,322


	December 31, 2019
			After one
	One year		but within		After five
(dollars in thousands)	or less		five years		years		Total
Commercial
Owner occupied RE	$	40,476		147,945		219,430		407,851
Non-owner occupied RE		55,187		267,879		178,812		501,878
Construction		31,035		19,278		30,173		80,486
Business		84,452		146,051		77,620		308,123
Total commercial loans		211,150		581,153		506,035		1,298,338
Consumer
Real estate		16,663		82,445		299,137		398,245
Home equity		9,921		25,828		143,989		179,738
Construction		13,405		1,222		26,844		41,471
Other		6,422		15,022		4,289		25,733
Total consumer		46,411		124,517		474,259		645,187
Total gross loan, net of deferred fees	$	257,561		705,670		980,294		1,943,525
Loans maturing after one year with:
Fixed interest rates							$	1,310,744
Floating interest rates								375,220

Schedule of Nonperforming Assets, Including Nonaccruing TDRs

Following is a summary of our nonperforming assets, including nonaccruing TDRs.


(dollars in thousands)	September 30, 2020			December 31, 2019
Commercial
Owner occupied RE	$	-			-
Non-owner occupied RE		1,059			188
Construction		143			-
Business		201			235
Consumer
Real estate		2,518			1,829
Home equity		632			431
Construction		-			-
Other		-			-
Nonaccruing troubled debt restructurings		4,198			4,111
Total nonaccrual loans, including nonaccruing TDRs		8,751			6,794
Other real estate owned		1,684			-
Total nonperforming assets	$	10,435			6,794
Nonperforming assets as a percentage of:
Total assets		0.42	%		0.30	%
Gross loans		0.50	%		0.35	%
Total loans over 90 days past due	$	2,742			2,038
Loans over 90 days past due and still accruing		-			-
Accruing troubled debt restructurings		5,277			5,219

Schedule of Key Information for Impaired Loans

The table below summarizes key information for impaired loans. The Company’s impaired loans include loans on nonaccrual status and loans modified in a TDR, whether on accrual or nonaccrual status. These impaired loans may have estimated impairment which is included in the allowance for loan losses. The Company’s commercial and consumer impaired loans are evaluated individually to determine the related allowance for loan losses.


			September 30, 2020
			Recorded investment
					Impaired loans		Impaired loans
	Unpaid				with no related		with related		Related
	Principal		Impaired		allowance for		allowance for		allowance for
(dollars in thousands)	Balance		loans		loan losses		loan losses		loan losses
Commercial
Owner occupied RE	$	2,316		2,296		1,843		453		92
Non-owner occupied RE		3,114		2,143		610		1,533		455
Construction		143		143		143		-		-
Business		2,919		2,483		281		2,202		910
Total commercial		8,492		7,065		2,877		4,188		1,457
Consumer
Real estate		4,206		4,031		3,152		879		75
Home equity		2,982		2,794		2,439		355		252
Construction		-		-		-		-		-
Other		138		138		-		138		18
Total consumer		7,326		6,963		5,591		1,372		345
Total	$	15,818		14,028		8,468		5,560		1,802


			December 31, 2019
			Recorded investment
					Impaired loans		Impaired loans
	Unpaid				with no related		with related		Related
	Principal		Impaired		allowance for		allowance for		allowance for
(dollars in thousands)	Balance		loans		loan losses		loan losses		loan losses
Commercial
Owner occupied RE	$	2,791		2,726		2,270		456		75
Non-owner occupied RE		4,512		4,051		2,419		1,632		465
Construction		-		-		-		-		-
Business		1,620		1,531		558		973		452
Total commercial		8,923		8,308		5,247		3,061		992
Consumer
Real estate		2,727		2,720		1,638		1,082		364
Home equity		885		838		459		379		66
Construction		-		-		-		-		-
Other		147		147		-		147		16
Total consumer		3,759		3,705		2,097		1,608		446
Total	$	12,682		12,013		7,344		4,669		1,438

Schedule of Average Recorded Investment and Interest Income Recognized on Impaired Loans

The following table provides the average recorded investment in impaired loans and the amount of interest income recognized on impaired loans after impairment by portfolio segment and class.


	Three months ended September 30, 2020					Three months ended September 30, 2019
	Average		Recognized		Average		Recognized
	recorded		interest		recorded		interest
(dollars in thousands)	investment		income		investment		income
Commercial
Owner occupied RE	$	2,985		40		2,728		27
Non-owner occupied RE		3,880		63		4,077		74
Construction		72		2		-		-
Business		2,506		51		1,738		14
Total commercial		9,443		156		8,543		115
Consumer
Real estate		3,063		58		2,876		30
Home equity		2,540		22		1,668		30
Construction		-		-		-		-
Other		139		1		151		2
Total consumer		5,742		81		4,695		62
Total	$	15,185		237		13,238		177


	Nine months ended					Nine months ended				Year ended
	September 30, 2020					September 30, 2019				December 31, 2019
	Average		Recognized		Average		Recognized		Average		Recognized
	recorded		interest		recorded		interest		recorded		interest
(dollars in thousands)	investment		income		investment		income		investment		income
Commercial
Owner occupied RE	$	2,617		73		2,742		96		2,739		128
Non-owner occupied RE		4,724		165		4,139		202		4,161		255
Construction		36		2		-		-		-		-
Business		2,270		98		1,766		61		1,582		79
Total commercial		9,647		338		8,647		359		8,482		462
Consumer
Real estate		3,207		98		3,062		97		2,771		131
Home equity		2,067		39		1,688		82		853		42
Construction		-		-		-		-		-		-
Other		143		3		154		4		153		5
Total consumer		5,417		140		4,904		183		3,777		178
Total	$	15,064		478		13,551		542		12,259		640

Schedule of Allowance for Loan Losses by Commercial and Consumer Portfolio Segments

The following table summarizes the activity related to the allowance for loan losses by commercial and consumer portfolio segments:


	Three months ended September 30, 2020
	Commercial										Consumer
	Owner		Non-owner
	occupied		occupied								Real		Home
(dollars in thousands)	RE		RE			Construction		Business			Estate		equity			Construction		Other			Total
Balance, beginning of period	$	5,800		8,791			977		5,841			6,538		2,641			615		399			31,602
Provision for loan losses		2,105		2,461			217		2,274			2,936		850			87		170			11,100
Loan charge-offs		-		(375	)		-		(564	)		-		(100	)		-		(25	)		(1,064	)
Loan recoveries		-		554			-		14			2		-			-		11			581
Net loan charge-offs		-		179			-		(550	)		2		(100	)		-		(14	)		(483	)
Balance, end of period	$	7,905		11,431			1,194		7,565			9,476		3,391			702		555			42,219
Net charge-offs to average loans (annualized)																						0.09	%
Allowance for loan losses to gross loans																						2.03	%
Allowance for loan losses to nonperforming loans																						482.43	%


	Three months ended September 30, 2019
	Commercial												Consumer
(dollars in thousands)	Owner occupied RE			Non-owner occupied RE			Construction			Business			Real Estate			Home equity		Construction		Other			Total
Balance, beginning of period	$	2,808			4,016			569			3,623			3,104			1,409		318		297			16,144
Provision for loan losses		(75	)		237			(63	)		588			(93	)		14		8		34			650
Loan charge-offs		-			(225	)		-			(709	)		-			-		-		(29	)		(963	)
Loan recoveries		-			-			-			8			7			1		-		1			17
Net loan charge-offs		-			(225	)		-			(701	)		7			1		-		(28	)		(946	)
Balance, end of period	$	2,733			4,028			506			3,510			3,018			1,424		326		303			15,848
Net charge-offs to average loans (annualized)																								0.21	%
Allowance for loan losses to gross loans																								0.86	%
Allowance for loan losses to nonperforming loans																								225.51	%

	Nine months ended September 30, 2020
	Commercial							Consumer
(dollars in thousands)	Owner occupied RE		Non-owner occupied RE		Construction	Business		Real Estate	Home equity			Construction		Other		Total
Balance, beginning of period	$	2,835	4,304		541	3,692		3,278		1,447			268	277			16,642
Provision for loan losses		5,070	8,081		653	4,562		6,187		1,976			434	337			27,300
Loan charge-offs		-	(1,508	)	-	(735	)	-		(100	)		-	(70	)		(2,413	)
Loan recoveries		-	554		-	46		11		68			-	11			690
Net loan charge-offs		-	(954	)	-	(689	)	11		(32	)		-	(59	)		(1,723	)
Balance, end of period	$	7,905	11,431		1,194	7,565		9,476		3,391			702	555			42,219
Net charge-offs to average loans (annualized)																	0.11	%

	Nine months ended September 30, 2019
	Commercial												Consumer
	Owner occupied RE			Non-owner occupied RE			Construction			Business		Real Estate			Home equity		Construction		Other			Total
Balance, beginning of period	$	2,726			3,811			615		3,616			3,081		1,348			275		290			15,762
Provision for loan losses		117			454			(109	)	577			(99	)	174			51		85			1,250
Loan charge-offs		(110	)		(239	)		-		(709	)		-		(100	)		-		(82	)		(1,240	)
Loan recoveries		-			2			-		26			36		2			-		10			76
Net loan charge-offs		(110	)		(237	)		-		(683	)		36		(98	)		-		(72	)		(1,164	)
Balance, end of period	$	2,733			4,028			506		3,510			3,018		1,424			326		303			15,848
Net charge-offs to average loans (annualized)																							0.09	%

Schedule of Allowance for Loan Losses and Recorded Investment in Loans by Impairment

The following table disaggregates the allowance for loan losses and recorded investment in loans by impairment methodology.


	September 30, 2020
	Allowance for loan losses				Recorded investment in loans
(dollars in thousands)	Commercial		Consumer	Total	Commercial	Consumer	Total
Individually evaluated	$	1,457	345	1,802	7,065	6,963	14,028
Collectively evaluated		26,638	13,779	40,417	1,350,213	714,299	2,064,512
Total	$	28,095	14,124	42,219	1,357,278	721,262	2,078,540


	December 31, 2019
	Allowance for loan losses				Recorded investment in loans
(dollars in thousands)	Commercial		Consumer	Total	Commercial	Consumer	Total
Individually evaluated	$	992	446	1,438	8,308	3,705	12,013
Collectively evaluated		10,380	4,824	15,204	1,290,030	641,482	1,931,512
Total	$	11,372	5,270	16,642	1,298,338	645,187	1,943,525

Consumer Loan [Member]

Financing Receivable, Allowance for Credit Loss [Line Items]

Summary of breakdown of outstanding loans by risk category

The tables below provide a breakdown of outstanding consumer loans by risk category.


	September 30, 2020
(dollars in thousands)	Real estate		Home equity		Construction		Other		Total
Pass	$	489,923		156,496		39,355		23,287		709,061
Special mention		2,182		1,351		-		107		3,640
Substandard		4,579		3,948		-		34		8,561
Doubtful		-		-		-		-		-
	$	496,684		161,795		39,355		23,428		721,262


	December 31, 2019
(dollars in thousands)	Real estate		Home equity		Construction		Other		Total
Pass	$	392,572		176,532		41,471		25,421		635,996
Special mention		2,267		775		-		261		3,303
Substandard		3,406		2,431		-		51		5,888
Doubtful		-		-		-		-		-
	$	398,245		179,738		41,471		25,733		645,187

Summary of outstanding commercial and consumer loans which include loans on nonaccrual by past due status

The following tables provide past due information for outstanding consumer loans and include loans on nonaccrual status as well as accruing TDRs.


	September 30, 2020
(dollars in thousands)	Real estate		Home equity		Construction		Other		Total
Current	$	494,202		160,605		39,355		23,428		717,590
30-59 days past due		857		399		-		-		1,256
60-89 days past due		-		494		-		-		494
Greater than 90 Days		1,625		297		-		-		1,922
	$	496,684		161,795		39,355		23,428		721,262


	December 31, 2019
(dollars in thousands)	Real estate		Home equity		Construction		Other		Total
Current	$	396,445		179,051		41,471		25,650		642,617
30-59 days past due		799		369		-		83		1,251
60-89 days past due		-		118		-		-		118
Greater than 90 Days		1,001		200		-		-		1,201
	$	398,245		179,738		41,471		25,733		645,187

Commercial Loan [Member]

Financing Receivable, Allowance for Credit Loss [Line Items]

Summary of breakdown of outstanding loans by risk category

The tables below provide a breakdown of outstanding commercial loans by risk category.


	September 30, 2020
	Owner		Non-owner
(dollars in thousands)	occupied RE		occupied RE		Construction		Business		Total
Pass	$	415,899		560,896		63,920		297,179		1,337,894
Special mention		359		6,078		-		2,596		9,033
Substandard		3,058		3,165		143		3,985		10,351
Doubtful		-		-		-		-		-
	$	419,316		570,139		64,063		303,760		1,357,278


	December 31, 2019
	Owner		Non-owner
(dollars in thousands)	occupied RE		occupied RE		Construction		Business		Total
Pass	$	404,237		492,941		80,486		301,504		1,279,168
Special mention		1,312		744		-		3,108		5,164
Substandard		2,302		8,193		-		3,511		14,006
Doubtful		-		-		-		-		-
	$	407,851		501,878		80,486		308,123		1,298,338

Summary of outstanding commercial and consumer loans which include loans on nonaccrual by past due status

The following tables provide past due information for outstanding commercial loans and include loans on nonaccrual status as well as accruing TDRs.


	September 30, 2020
	Owner		Non-owner
(dollars in thousands)	occupied RE		occupied RE		Construction		Business		Total
Current	$	418,765		569,552		64,063		303,248		1,355,628
30-59 days past due		-		-		-		475		475
60-89 days past due		-		355		-		-		355
Greater than 90 Days		551		232		-		37		820
	$	419,316		570,139		64,063		303,760		1,357,278


	December 31, 2019
	Owner		Non-owner
(dollars in thousands)	occupied RE		occupied RE		Construction		Business		Total
Current	$	406,594		501,676		80,486		307,710		1,296,466
30-59 days past due		706		151		-		178		1,035
60-89 days past due		-		-		-		-		-
Greater than 90 Days		551		51		-		235		837
	$	407,851		501,878		80,486		308,123		1,298,338